April 20, 2022
NEW DELHI – The International Monetary Fund (IMF) praised India’s vaccination programme and the help it extended to neighbouring countries and other vulnerable economies in meeting the challenges posed by the pandemic.
The IMF also appreciated the help India was providing to Sri Lanka during the ongoing unprecedented economic crisis in the island nation.
Union Minister for Finance Nirmala Sitharaman had a meeting yesterday with IMF Managing Director Kristalina Georgieva on the sidelines of the IMF-World Bank Spring Meetings in Washington.
They discussed issues of importance for India besides several issues currently being faced by the global and regional economies.
Georgieva highlighted the resilience of India which remains the fastest-growing country across the globe despite challenges posed by the pandemic. She also referred to an effective policy mix followed by India that was well targeted and lauded India for its contribution to the capacity development activities of the IMF.
Sitharaman indicated that the IMF should support and urgently provide financial assistance to Sri Lanka. The IMF MD assured her that the IMF would continue to actively engage with Sri Lanka.
Discussing the recent geopolitical developments, Sitharaman and Georgieva shared concerns about the impact of the Russia-Ukraine conflict on the global economy and the challenges linked to the rising energy prices.
Explaining India’s policy approach, Sitharaman mentioned that an accommodative fiscal stance was also accompanied by major structural reforms, including the bankruptcy code and targeted help to MSME and other vulnerable sections.
The Finance Minister further stated that India has been helped by good agricultural output, supported by a good monsoon during the Covid pandemic period. Agricultural exports, along with other exports, have also sharply increased. India was entering into new economic activities which would help resolve some of the global supply chain issues, she concluded.